Cost of living crisis hits Tauranga charities with some facing $1m+ shortfall

Waipuna Hospice chief executive Richard Thurlow says it is facing a huge shortfall this year. Photo / Mead Norton

Waipuna Hospice is predicting a $1.7 million shortfall this year and its boss says while the charity 'doesn't want people to face death alone', something has to give.

The hospice is not alone as financial donations to other charities dwindle amid the cost of living crisis.

Hospice chief executive Richard Thurlow warned that without government support hospices throughout New Zealand would be unable to provide their existing levels of care and support.

''We can see business and people struggling. We too are struggling.''

Thurlow predicted the hospice needed $13.3m to fully fund its service in the next financial year.

Of that, he hoped 43 per cent would come from government funding which left $7.5m to be raised from the hospice's charity shop, donations, and community events.

''It is a near-impossible amount ... we are budgeting for a loss of about $1.7m," Thurlow said.

SPCA donations help fund the care of dogs like Pepper - held here by foster coordinator Hannah Cobbs - until they are adopted. Photo / Samantha Motion

''Donations to our charity shops have been down, we have seen a 6 per cent decline in income from donations and grants from the previous year. We are also impacted by the rise in costs associated with wages, food, and fuel prices.''

Petrol for the hospice's fleet of 19 cars and delivery vehicles had increased by $2000 a month.

The hospice was expected to care for about 1000 patients this year, as well as whānau living in Tauranga and the Western Bay of Plenty.

About 80 to 90 per cent of its care was provided in patient homes and all its services were free.

''Of course, this essential and valued service is not really free. It costs a lot for us to provide, '' Thurlow said.

HealthNZ provided a Consumer Price Index-linked rate increase of 3 per cent from the previous year's funding but the current index increase was 7.3 per cent. Meanwhile, there had been no government funding to cover this increase.

Thurlow said the hospice was lucky to have an incredibly supportive community.

''The kindness and generosity are there, but thanks to ongoing pressures from Covid and the rise in the cost of living, people just don't have the money to spare. They can't afford to support us like they may want to.''

Waipuna Hospice chief executive Richard Thurlow says it is facing a huge shortfall this year. Photo / Mead Norton

Tauranga Community Foodbank manager Nicki Goodwin said donations of cash and goods had dropped by 20 per cent in the last year.

The food bank used the money to buy groceries and applied for funding from "really vital" philanthropic and other organisations to meet its operating costs.

Goodwin estimated food costs had increased by 30 to 40 per cent and there had been a loss of discounts from other businesses who could no longer afford to pass them on.

''It has been wham, wham, wham.''

This year the food bank was expected to help 18,000 to 20,000 people and Goodwin said it had evolved to meet the challenges.

''What we're looking at is the resources we've got and how best to use them ... that's constantly changing.''

She said Tauranga and the wider community showed exceptional support.

''Who can give, will give. When we assist people and they say 'thank you so much' I often say 'don't thank us, thank your neighbours and others in the community because that is why we are here'.''

SPCA engagement general manager Sarah Cotter said fundraising, in general, was in decline so it had to adapt and look for new ways to engage people.

''Donations and bequests are the lifeblood that keeps the doors open, the lights on and the animals in good care.''

The SPCA had 32 centres across New Zealand, including Tauranga and Rotorua which took care of more than 31,000 animals in the past 12 months.

It was funded predominantly from donations and bequests and received $2.5m from the Government which went solely towards funding the inspection side of the service. This cost more than $12m a year, Cotter said.

But it was extremely fortunate to have a strong and loyal supporter base.

"So while some of our fundraising has been severely impacted by Covid, like events and in-person meetings, we have been able to maintain revenue from generous donors who've left SPCA gifts in their wills.''

More people were also seeking help for their animals.

Tauranga Community Foodbank manager Nicki Goodwin. Photo / NZME

''The SPCA works hard to provide this through desexing programmes, food parcels and advice. We are also seeing an increase on previous years of animals coming into our centres, especially canines.''

Salvation Army public relations director Tim Hamilton said it was grateful the support of the public continued to be strong but acknowledged the rising cost of living might be a challenge for some donors.

''Our experience is that giving is still strong and we as yet have not experienced any material decline in donations. As an organisation that has worked in New Zealand for nearly 140 years, we are so very grateful for the loyalty and trust people have in us to care for the 140,000 Kiwis who come to us each year for support, and our ability to continue to do so.''

Donations directly support its frontline work in the community through a range of different services.

''The Salvation Army would struggle to meet the ever-increasing demand of people coming to us for support without ongoing donations."

The Salvation Army was largely supported by a variety of donors, corporate partners and community grant organisations and some funding from external contracts to carry out specialised services for people in need.

Some donations were specified by donors for a particular purpose, while other donations received were used where the money was needed most, he said.

Rotorua community Hospice chief executive Jonathon Hagger said every year it had a funding shortfall of $1m.

However, even during the hard times of Covid-19 and a cost of living crisis, those who had the ability and means to be able to support the hospice financially had gone the extra mile to help, he said.